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Natural Resource Partners (NRP)
NYSE:NRP
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Natural Resource PRN
(NYSE:NRP)
Rating:73Outperform
Price Target:
$115.00
â–²(11.33% Upside)
Natural Resource PRN (NRP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.36B
Dividend Yield4.07%
Average Volume (3M)22.34K
Price to Earnings (P/E)9.7
Beta (1Y)0.60
Revenue Growth-20.92%
EPS Growth-26.59%
CountryUS
Employees56
SectorEnergy
Sector Strength44
IndustryCoal
Share Statistics
EPS (TTM)2.52
Shares Outstanding13,138,097
10 Day Avg. Volume15,565
30 Day Avg. Volume22,345
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue6.15
Enterprise Value/Gross Profit6.59
Enterprise Value/Ebitda7.35
Forecast
1Y Price Target
$115.00Price Target Upside11.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Natural Resource PRN Business Overview & Revenue Model
Company DescriptionNatural Resource Partners L.P., through its subsidiaries, owns, manages, and leases a portfolio of mineral properties in the United States. It operates through two segments, Mineral Rights and Soda Ash. The company owns interests in coal, soda ash, trona, and other natural resources. Its coal reserves are primarily located in Appalachia, the Illinois Basin, and the Northern Powder River Basin in the United States; industrial minerals and aggregates properties are located in the United States; oil and gas properties located in Louisiana; timber assets located in West Virginia; and trona ore mining operation and soda ash refinery are located in the Green River Basin, Wyoming. The company leases a portion of its reserves in exchange for royalty payments; and owns and leases transportation and processing infrastructure related to coal properties. NRP (GP) LP serves as the general partner of the company. Natural Resource Partners L.P. was incorporated in 2002 and is headquartered in Houston, Texas.
How the Company Makes MoneyNatural Resource PRN generates revenue primarily through consulting fees for its expert services in environmental assessments and strategic resource management. Key revenue streams include hourly billing for consultancy services, project-based fees for larger engagements, and retainer agreements with ongoing clients. Additionally, NRP has established partnerships with governmental agencies and non-profit organizations, securing funding for collaborative projects focused on sustainability initiatives. The company may also earn revenue through workshops, training sessions, and publications related to best practices in natural resource management.
Natural Resource PRN Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: 0.28%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Negative
The call highlighted robust free cash flow generation and successful deleveraging progress, but was overshadowed by significant challenges in the coal and soda ash markets and a lack of progress in carbon-neutral initiatives.Q2-2025 Updates
Positive Updates
Robust Free Cash Flow Generation
NRP generated $46 million of free cash flow in Q2 2025 and $203 million over the last 12 months, despite cyclical lows in commodity prices.
Deleveraging Strategy Success
NRP is on track to pay off substantially all debt by mid-next year, potentially increasing unitholder distributions starting next August.
Mineral Rights Segment Performance
Generated $40 million of net income and $46 million of operating and free cash flow in Q2 2025.
Negative Updates
Coal Market Downturn
Metallurgical and thermal coal markets under pressure due to soft demand for steel, cheap natural gas, and high coal inventories.
Soda Ash Market Challenges
Soda ash market significantly oversupplied, with prices below production costs, impacting income and cash flow.
Decreased Income and Cash Flow
Mineral Rights segment net income decreased by $13 million, and operating and free cash flow decreased by $11 million year-over-year.
Stagnation in Carbon-Neutral Initiatives
No significant progress on carbon-neutral initiatives due to political, regulatory, and market uncertainties.
Company Guidance
During the Natural Resource Partners L.P. second quarter 2025 earnings call, the company highlighted its robust financial performance despite challenging market conditions. NRP generated $46 million in free cash flow for the quarter and $203 million over the past 12 months, while also reporting $34 million in net income. The Mineral Rights segment contributed $40 million in net income and $46 million in operating and free cash flow, although these figures reflected a decrease due to weaker coal markets. For the quarter, metallurgical coal accounted for approximately 70% of coal royalty revenues and 55% of sales volumes. The Soda Ash segment reported $3 million in net income and $5 million in free cash flow, with both metrics declining due to weak demand and increased supply pressures. NRP is on track to pay off substantially all of its debt by mid-2025, allowing for increased unitholder distributions by August 2026. Despite current market headwinds, the company remains optimistic about long-term opportunities and continues to explore potential investments and opportunities for capital returns.Natural Resource PRN Financial Statement Overview
Summary
NRP shows strong operational efficiency with high gross profit margins and robust cash flow generation. However, declining revenue and net income, coupled with high leverage, pose significant risks. The company's strategic focus on debt reduction and cash flow stability offers some financial resilience.Income Statement
The income statement shows a declining trend in revenue, with a significant drop from $328 million in 2022 to $229 million in the TTM period. Gross profit margins remained high, indicating efficient cost management, but net income decreased sharply in the TTM period, affecting profitability. Historical profitability was stronger, with high EBIT and net margins in 2022.70
Positive
Balance Sheet
The balance sheet reflects high leverage with a debt-to-equity ratio peaking in previous years and stockholders' equity nearly depleted in the TTM period. The equity ratio has decreased significantly, indicating increased risk. Total assets remained relatively stable, but liabilities' management needs attention to improve stability.65
Positive
Cash Flow
The cash flow statement is strong, with consistent operating cash flow and free cash flow. The operating cash flow to net income ratio is high, indicating efficient cash generation relative to net income. Cash flow stability is a notable strength despite the overall profitability decline.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 219.50M | 245.03M | 293.66M | 328.08M | 194.25M | 129.01M |
| Gross Profit | 205.13M | 245.03M | 261.34M | 305.57M | 175.17M | 119.81M |
| EBITDA | 183.90M | 214.73M | 311.03M | 317.29M | 166.85M | -34.65M |
| Net Income | 17.20M | 183.64M | 274.42M | 268.49M | 48.16M | -136.51M |
Balance Sheet | ||||||
| Total Assets | 761.97M | 772.91M | 797.88M | 235.09M | 953.82M | 921.88M |
| Cash, Cash Equivalents and Short-Term Investments | 30.34M | 30.44M | 11.99M | 39.09M | 135.52M | 99.79M |
| Total Debt | 101.34M | 142.07M | 155.06M | 168.28M | 433.55M | 471.50M |
| Total Liabilities | 171.52M | 221.80M | 219.64M | 235.09M | 513.89M | 549.02M |
| Stockholders Equity | 579.95M | 541.56M | 570.23M | 404.80M | 3.21M | 322.00K |
Cash Flow | ||||||
| Free Cash Flow | 200.37M | 248.49M | 310.97M | 266.72M | 121.80M | 89.27M |
| Operating Cash Flow | 200.37M | 248.49M | 310.98M | 266.84M | 121.80M | 89.27M |
| Investing Cash Flow | 3.79M | 7.51M | 5.42M | 2.69M | 2.41M | 1.68M |
| Financing Cash Flow | -206.15M | -237.55M | -343.50M | -365.95M | -88.49M | -89.43M |
Natural Resource PRN Technical Analysis
Positive
103.30
Price Trends
98.86
Positive
98.53
Positive
100.30
Positive
Market Momentum
1.42
Positive
57.74
Neutral
57.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NRP, the sentiment is Positive. The current price of 103.3 is above the 20-day moving average (MA) of 102.47, above the 50-day MA of 98.86, and above the 200-day MA of 100.30, indicating a bullish trend. The MACD of 1.42 indicates Positive momentum. The RSI at 57.74 is Neutral, neither overbought nor oversold. The STOCH value of 57.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NRP.
Natural Resource PRN Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $2.20B | 17.70 | 3.87% | 1.64% | -5.83% | -73.88% | |
73 Outperform | $1.36B | 9.74 | 28.59% | 4.07% | -20.92% | -26.59% | |
71 Outperform | $3.18B | 13.63 | 12.59% | 10.60% | -8.59% | -55.01% | |
67 Neutral | $684.10M | 9.38 | 11.20% | 6.13% | -7.70% | 17.73% | |
65 Neutral | $14.84B | 8.64 | 2.77% | 5.45% | 4.51% | -62.52% | |
64 Neutral | $3.36B | 82.93 | 1.95% | 0.52% | -27.62% | -90.48% | |
62 Neutral | $2.14B | 64.14 | -2.29% | 0.36% | -29.63% | -108.26% |
* Energy Sector Average
Performance Comparison
NRP
Natural Resource PRN
103.30
19.24
22.89%
ARLP
Alliance Resource
25.47
3.82
17.64%
SXC
Suncoke Energy
7.83
-0.67
-7.88%
AMR
Alpha Metallurgical Resources
159.76
-80.80
-33.59%
HCC
Warrior Met Coal
61.59
2.88
4.91%
BTU
Peabody Energy Comm
17.97
-4.10
-18.58%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.